Bali is one of the world’s most visited holiday hotspots; no one can say otherwise. But beyond that, Bali offers something more, especially to global investors. What is it that Bali offers that draws more and more savvy investors from Australia and the rest of the world? The strong potential of the rental market. Property prices have shown massive growth, fueled by the thriving tourism industry. And it only gets better; Bali has a wide range of property investments that cater to any investor’s needs. But how does this work, and why should you invest in Bali now? Let’s talk about it more.
The Appeal of Bali for Property Investment
Located in a tropical country, Bali is blessed by a year-round warm climate. This attracts visitors from countries with a four-season climate. The hot sun and coastal living are a unique living experience that tourists from all around the world dream of. The “working from Bali” trend influences the surge of digital nomads residing in Bali, thus increasing the rental accommodations. From this phenomenon, the expat community began to grow. This community has also fueled the rental market, attracting villa investors, making it great social proof for investors to start buying Bali villas for sale.
Market Trends and Growth Potential
Bali’s property market has seen impressive growth in recent years, and it’s not slowing down anytime soon. Popular areas like Canggu, Uluwatu, Ubud, and Seminyak are seeing high demand, especially from international buyers and renters. This has led to rising property values and strong ROI potential for investors. But it’s not just the well-known spots—emerging areas across the island are starting to catch attention too, offering great opportunities for those looking to get in early. Whether you’re after a holiday rental or a long-term investment, Bali property investment continues to offer exciting possibilities in a booming market.
Buying an Investment Property in Bali: What You Need to Know
Now that you have decided to buy a property in Bali, what step should you take next? First of all, get familiar with the ownership title. These are the two most popular options: Freehold (Hak Milik) and Leasehold (Hak Sewa). Which one is the ideal one for foreigners, you may ask. Since foreigners can’t directly own property in Bali (restricted to only Indonesian citizens), your option is leasehold ownership. This allows you to own the property; this typically lasts for about 25-30 years with an option to extend—not bad, right?
You might think that there is so much work to do, so many details to pay attention to. This is when you need to work with a reliable and trustworthy local real estate agent. Especially those who have deep knowledge about how the local regulations work. This could save your time (and even money). They will certainly help you navigate your Bali investment journey, from choosing your property to assisting with the financial and legal due diligence. Make sure you work with the ones with proven track records so you get the best outcome for your money.
Can Australians Buy Property in Bali?
As mentioned in the section above, foreigners can’t directly own property in Bali. But this question might arise: “So can Australians buy property in Bali?” The answer is yes, but you need to know what procedures to follow. Aside from the leasehold options, you can also own a property in Bali with other legal options. Those are setting up a foreign-owned company (PT. PMA) and using a nominee structure. Setting up a foreign-owned company might seem a bit of a hassle, especially if you want a faster process. However, this could be beneficial in the long run. Nominee structure usually carries more risks when you don’t have a solid legal backing. That is why, whichever options you choose to buy property in Bali, always consult with a reliable legal expert.
While the process might seem complex at first, with the right guidance, buying property in Bali can be both legal and secure for Australian investors.
Expert Tips for a Successful Property Investment in Bali
So here is your homework before you go purchase your Bali investment property. Find the right real estate agent and legal expert. How? You may ask. There are plenty of options available, especially in Bali. Their services vary from providing all-in-one assistance to post-purchase support. Do your little research on the internet, read their customer reviews, and schedule a call with their agent. If what they offer resonates and aligns with your goals, you can proceed to the next step.
Number two, get used to understanding the local market. Property prices in Bali varied in each region; this will be highly influenced by the tourist flow. In some places, daily rates will increase in high season; thus, the property prices and value will increase too. Understand how a certain location performs in each season so you can forecast how your property is going to perform in short-term or long-term appreciation.
Last but not least, management and maintenance. After buying your right property, you need to take care of the property long-term. To keep your property in the best condition, it is recommended to use a property management service. Using this service helps a lot, especially for those who don’t live in Bali.
Final Thoughts: Is Bali Still Worth the Investment?
There have been ups and downs in the real estate market, but Bali’s real estate market has shown resilient growth each year. The tourism industry seems to have bright prospects in the future, making sure this also impact the property investment potential. Plan your Bali investment wisely, and be ready to benefit from the thriving market. Work with the right real estate agent and always be well-informed. Ready to level up your investment journey? Start scheduling your consultation session today!
